Last updated: July 2026 · Giulia Uggias-Sproß, German Tax Advisor (Steuerberaterin, M.A. Taxation)
Anyone investing in cryptocurrency sooner or later asks the same question: what is actually left after selling? In Germany, the answer depends less on the coin than on the calendar.
In brief
- Held longer than one year → sale is tax-free, regardless of the amount of gain (§ 23 EStG)
- Sold within one year → your personal income tax rate, up to 45 % — no flat capital gains tax
- Exemption limit of €1,000 per year (since 2024) — if exceeded, the entire gain becomes taxable
- A crypto-to-crypto swap counts as a sale — the holding period starts again
- Staking, lending, mining: separate rules under § 22 No. 3 EStG, with a €256 annual exemption limit
- From 2026, crypto exchanges report automatically to the tax authorities (DAC8)
Why is crypto taxed differently from shares in Germany?
For tax purposes, Bitcoin, Ether and comparable tokens are treated in Germany neither as currency nor as a capital investment, but as “another asset”. The governing provision is therefore § 23 EStG, which covers private disposal transactions. This has two sides:
- The good news: there is a route to complete tax exemption.
- The bad news: miss it, and you pay not 25 percent flat tax but your personal income tax rate — which goes up to 45 percent.
How long must I hold crypto to sell tax-free?
Longer than one year. Anyone holding a cryptocurrency beyond the one-year period and selling only afterwards realises the gain tax-free — regardless of its size. Whether it is a thousand euros or a six-figure sum makes no difference once the period has expired.
Holding period and taxation at a glance:
- Held longer than 1 year: tax-free — regardless of the amount of gain.
- Up to 1 year, gain up to €1,000: tax-free (exemption limit).
- Up to 1 year, gain above €1,000: personal income tax rate, up to 45 % — on the entire gain.
How the holding period runs
- It begins on the day after acquisition and ends one year later.
- It is strict: a sale on the final day of the period remains taxable; one day beyond it is tax-free.
- Example: bought on 15 January → sell no earlier than 16 January of the following year.
What counts as a sale
- Exchanging into euros.
- Exchanging one cryptocurrency for another: swapping Bitcoin for Ether means you have sold and re-acquired for tax purposes — for the newly acquired holding, the period starts again.
What applies if I sell within one year?
Selling earlier does not automatically mean tax is due. An exemption limit of €1,000 per calendar year applies, in force since 2024. If your total gain from private disposal transactions stays below it, no tax arises.
The decisive term is exemption limit (Freigrenze) — it is not a tax-free allowance (Freibetrag). If the limit is exceeded by even one euro, the entire gain becomes taxable, not just the excess. It is then taxed at your personal income tax rate.
How are staking, lending and mining taxed?
- How are these earnings classified? As other income under § 22 No. 3 EStG.
- When are they taxed? On receipt — the decisive figure is the euro value of the coins received at that moment.
- Is there an exemption limit? Yes, €256 per year.
- Does staking extend the holding period to ten years? No. Staked or lent holdings can also be sold tax-free after one year — the German Federal Ministry of Finance has clarified this.
What changes in 2026 and 2027?
- Since 2026 — DAC8: the EU directive requires crypto exchanges to report transaction data automatically to the tax authorities. Clean documentation is therefore no longer a matter of goodwill but a prerequisite.
- From 2027 — possible end of the holding period: at political level, abolishing the one-year tax exemption is under discussion, together with an alignment towards the taxation of shares. The legislative process is not concluded, and retroactively capturing gains that have already accrued tax-free would be constitutionally problematic. Anyone holding positions should nevertheless follow developments closely.
Our advice: a checklist for practice
German crypto taxation rewards patience and punishes carelessness:
- Document acquisition dates — completely, and per coin.
- Separate HODL and trading holdings.
- Keep an eye on the deadlines, especially before planned sales.
- Count exchange transactions too — including crypto for crypto.
- Seek individual advice for larger holdings, international elements or complex DeFi structures — particularly now, while the legal position is shifting.
